EBSA News Release: [11/18/2011]
Contact Name: Elizabeth Todd or Juan Rodriquez
Phone Number: (972) 850-4710 or x4709
Release Number: 11-1654-DAL
Plano, Texas-based DS3 Computing Solutions to restore workers' 401(k) contributions, resolving US Labor Department lawsuit
PLANO, Texas A consent judgment and order have been entered in federal district court requiring $4,120 to be restored to the DS3 Computing Solutions Inc. 401(k) Plan, resolving a lawsuit filed by the U.S. Department of Labor. The suit alleged that defendants DS3 Computing Solutions Inc. and owner Davis Sylvester violated the Employee Retirement Income Security Act.
An investigation by the department's Employee Benefits Security Administration found that some employee contributions made between Dec. 31, 2007, and Oct. 30, 2009, were not timely remitted to the plan by the defendants and other contributions were not remitted at all.
The defendants agreed to a judgment ordering them to restore all plan losses with interest, totaling $4,120; be enjoined from violating ERISA in the future; be permanently barred from serving as fiduciaries or service providers to any plan governed by ERISA in the future; and pay a penalty to the federal government for the violations equal to 20 percent of the amount to be restored to the plan.
"Plan officials have a duty to manage and protect employees' benefit plans and their assets," said Roger Hilburn, director of EBSA's Dallas Regional Office. "The action taken is designed to restore plan assets that were not properly preserved for the company's workers."
The case was litigated by the Labor Department's Regional Solicitor's Office in Dallas, and the suit was filed in the U.S. District Court for the Eastern District of Texas, Sherman Division. Employers and employees can reach EBSA's Dallas office at 972-850-4500 or toll-free at 866-444-3272 for assistance relating to private sector retirement and health plans. Additional information can be found at http://www.dol.gov/ebsa.
Solis v. DS3 Computing Solutions Inc. et. al.
Civil Action Number 4:11-CV-00643-MHS